Press Release: IMF Declares Zimbabwe Ineligible to Use IMF Resources
IMF News, September 25, 2001
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Bibliographic details
- Published: September 25, 2001
Executive Board decision
- Press Release No. 01/40 dated September 25, 2001.
- On September 24, 2001 the Executive Board of the International Monetary Fund (IMF) reviewed Zimbabwe's overdue financial obligations to the IMF and:
- declared Zimbabwe ineligible to use the general resources of the IMF; and
- removed Zimbabwe from the list of countries eligible to borrow resources under the Poverty Reduction and Growth Facility (PRGF).
Overdue obligations and arrears
- Zimbabwe first incurred arrears to the IMF in mid-February 2001.
- At end-August 2001 Zimbabwe's overdue obligations totaled SDR 41.3 million (about US$53 million), including:
- SDR 18.9 million (about US$24 million) to the IMF's General Department; and
- SDR 22.3 million (about US$29 million) to the PRGF Trust.
Rationale and remedial framework
- The declaration of ineligibility to use the general resources of the IMF is one of the remedial measures to encourage members to settle overdue financial obligations to the IMF.
- Removing a country from the list of PRGF-eligible countries is a parallel action when a member has overdue obligations to the PRGF Trust.
Executive Board's requests and assessments
- The Executive Board urged the Zimbabwean authorities to make full and prompt settlement of Zimbabwe's overdue financial obligations to the IMF.
- The Executive Board acknowledged the authorities' intention to initiate quarterly payments to the IMF as a first step of cooperation, but noted those payments would fall far short of the amount required to stabilize the level of arrears to the IMF.
- The Executive Board urged the Zimbabwean authorities to adopt the economic and financial policies needed to enable Zimbabwe to achieve economic recovery as soon as possible.
- The Executive Board indicated that the Fund stood ready to cooperate with the authorities in support of efforts to adopt and implement a comprehensive economic recovery program.
Follow-up
- The Executive Board will review further the matter of Zimbabwe's overdue financial obligations to the Fund within three months.
International Monetary Fund press release (September 25, 2001).